“Port Houston continues to build capacity and adjust to the changing market by providing more yard space, more equipment, and more hours of service to our customers. Port Houston is meeting with customers, communicating updates and working with our partners in the ILA to maintain cargo fluidity,” said Roger Guenther, Executive Director at Port Houston.

Most recently, the Port received three new ship to shore (STS) cranes and finished construction of the new Wharf 6 at Bayport Container Terminal. This added wharf and new STS cranes will help service vessels up to 15,000 TEUs in size upon completion of the Bayport Channel Segment in 2024 of the Houston Ship Channel Expansion – Project 11. Additionally at Bayport, we’ve invested a more than $425 million in infrastructure improvements to help with traffic flow on Freight Station Road and empty and loaded container storage capacity.

Port Houston has also purchased three additional STS cranes and 26 rubber-tired gantry (RTG) cranes to strengthen our vessel and yard operations. Those are expected to arrive in early 2024.

Additionally, at Barbours Cut Container Terminal , Port Houston has invested $43 million to enhance the overall terminal traffic flow, and is investing more than $650 million over the next 5 years to help redevelop and rehab existing areas around the terminal. In 2022 we nearly doubled our in-gate capacity, adding 14 new gates to bring our total to 29 entry gates. We also enhanced technology and support areas to help expedite entry into the terminal. This year, we’ve redeveloped 14.5 acres at the west end of the terminal for additional container storage space and we’ve begun rehabilitating wharves as well as container yards to make terminal operations more efficient.

Ryan Mariacher, Port Houston’s Director of Container Terminals, said, “We continue to expedite wharf and container yard expansion projects to regain capacity for anticipated demand. With the dramatic improvement of cargo fluidity, we are focused on process optimization to improve terminal service levels through technology implementation and collaboration with customers and terminal users.”

The Houston Ship Channel Expansion – Project 11 has also been moving along rapidly. In 2023, Port Houston has completed Segment 1A Bolivar Roads to Redfish which has eliminated daylight restrictions for larger vessels within this segment and is positively helping cargo move smoothly. We’ve also cleared existing shoreline vegetation near Bayport, begun building San Leon and Dollar Reef Oyster mitigation sites, and begun dredging the Bayport Ship Channel. The completion of Project 11 in late 2026 will facilitate handling of larger vessels, which is a critical step to increasing the efficacy of the nation's logistics infrastructure.

Port Houston knows how important reliability and efficiency is to customers. You can count on Port Houston to continue to meet our customers’ needs now and in the future.

Click the button below to learn more about the investments Port Houston is making to advance cargo movement.

The post Capital Enhancements to Support Rapid Growth: Accelerating Infrastructure Investments to Meet Demand appeared first on Port Houston.

The pandemic has accelerated the demand for industrial space, increasing warehousing developments in the Houston region. According to JLL’s Q2 2022 report, “While inventory and supply chain issues made recent headlines, retail and related industries have continued to take sizable, long-term positions in Houston given its growing population base and strong port.” Additionally, JLL states, “Robust leasing activity continued with 11.4 million square-feet of deals signed, including two transactions over one million square-feet in size.”¹

Port Houston saw an increase in tonnage of 15% at the end of 2021, and so far in 2022 there has been no slowing down with a 24% increase in tonnage year-to-date. Much of this surge in demand, has been due to larger volumes of imports and exports around Port Houston’s container terminals. Through July 2022, Port Houston’s container terminals have handled more than 2.2 million twenty-foot-equivalent units (TEUs), an increase of 17% compared to the same time last year.

The surge in imports and longer dwell-times has factored into the decision-making by Port Houston leadership to accelerate infrastructure improvements. Port Houston is investing $700 million in the next five years at Barbours Cut and Bayport Container Terminal to advance cargo movement. We’re building new yard space and wharves as well as making improvements to the Houston Ship Channel, Bayport Ship Channel and Barbours Cut Ship Channel to make way for larger cargo vessels. As more goods move across Port Houston’s docks, the need for additional space to store that cargo will continue. We are seeing industrial warehouses in the Port Houston region being built to keep up with demand.

Growth of Distribution Centers

In February 2022, Macy’s Inc. signed an agreement with Tomball City Council to relocate its distribution center to the Lovett Industrial development near the Grand Parkway Toll Road in southern Tomball. The company currently operates out of a facility in Houston but will move to a 900,000-square-foot distribution center within Tomball city limits. Construction on the new facility has begun and is expected to be completed by mid-2023.

Ferguson Enterprises is adding another 750,000-square-foot distribution center to its collection. This DC is among the largest in the Houston region and will give Ferguson a key competitive advantage in the wholesale plumbing products and supplies industry.

Target has invested another five billion dollars in operations and is opening its first sortation centers in Houston and in Dallas. These are the first-of-its-kind concept that help Target stores do even more and strengthen their delivery capabilities for the future.

In 2021, Ross Stores Inc., which owns the Ross Dress for Less and d.d. Discount brands, opened its largest US distribution center in Waller County 20 miles west of Houston. The 2.2 million square foot distribution center in Brookshire was a $300 million project intended to service more than 1,800 stores nationwide.

Floor & Décor and Lowe’s also added 1.5 million square foot distribution centers in Houston and New Caney areas. Webstaurant Store and Article Furniture opened their distribution centers in Baytown with proximity to the Houston Ship Channel.

Cold-Storage Warehouses

The growth in demand doesn’t stop with standardized containers. Port Houston is also seeing a tremendous uptick in reefer (refrigerated) cargo resulting in the construction of new cold-storage facilities and construction plans at Barbours Cut and Bayport Container Terminals to provide more reefer cargo capacity.

In March 2022, Maersk companies chose Houston for its first-ever cold-storage facility which is on track to open in August 2022. The 90-foot unloading dock and temperature-controlled facility will support cold chain services to handle frozen and fresh commodities including fish, poultry, beef, pork, fresh fruits and vegetables. Connectivity through Port Houston and access to rail lines and highways will support Maersk Ocean Services cold chain integration to its current logistics efficiencies.

Custom Goods CES unveiled its new warehouse in Pasadena, TX near Port Houston’s Bayport Container Terminal. This state-of-the-art facility has more than 353,000 square feet of storage space for refrigerated and dry cargo. It’s strategically located between Bayport and Barbours Cut Container Terminal for fast turnover times. This facility is one its final stages of construction and will be fully operational starting in October 2022.

In 2021, Blackline Cold Storage started constructing their new 298,000 square foot cold-storage facility strategically located near Barbours Cut and Bayport Container Terminals. This facility features multiple segregated temperature zones, black freezing capabilities and up to 50 truck doors. The facility at full buildout will expand up to 650,800 square-foot. The Blackline facility represents the newest large-scale cold-storage facility near Port Houston and opened in 2022.

It doesn’t look like the warehousing frenzy will slow down anytime soon. Dallas/Fort Worth, Austin, and Houston are seeing increases in demand for storage space. Retailers in Texas and beyond are investing in Houston thanks to its growing port, a strategic gateway for cargo, centrally located to support movement of goods between Port Houston and inland points.²

References

¹ Alexander, R. (2022, July 2). Houston Industrial Insight – Q2 2022 [Review of Houston Industrial Insight – Q2 2022]. JLL. https://www.us.jll.com/content/dam/jll-com/documents/pdf/research/americas/us/q2-2022-industrial-insights/jll-us-industrial-insight-q2-2022-houston.pdf

‌² Jensen, G. (2022, July 2). Austin Industrial Insight – Q2 2022 [Review of Austin Industrial Insight – Q2 2022]. JLL. https://www.us.jll.com/content/dam/jll-com/documents/pdf/research/americas/us/q2-2022-industrial-insights/jll-us-industrial-insight-q2-2022-austin.pdf

‌³ Thomas, N. (2022, July 2). Dallas-Fort Worth Industrial Insight – Q2 2022 [Review of Dallas-Fort Worth Industrial Insight – Q2 2022]. JLL. https://www.us.jll.com/content/dam/jll-com/documents/pdf/research/americas/us/q2-2022-industrial-insights/jll-us-industrial-insight-q2-2022-dallasfort-worth.pdf

The post Warehousing Frenzy in Houston appeared first on Port Houston.

Caption: Harris County Commissoner Adrian Garcia with port staff.

Port Houston hosted Harris County Precinct 2 Commissioner Adrian Garcia Aug. 30 for a briefing about Foreign Trade Zone no. 84, which is managed by Port Houston.

The program’s history and how it supports regional economic development and jobs was discussed. One of the largest zones in the nation, Port Houston’s FTZ 84 is top in the U.S. for total merchandise received.

There are 250-plus FTZs in the United States. Texas is the most active state in the country with a total of 32 zones. More than 150 companies in the Houston region have utilized and benefited from this program. Most are large exporters and manufacturers, but FTZs also are an effective tool for medium and small companies, helping them save money and grow their businesses.

The main benefits of the program include the ability to defer, eliminate or reduce federal import duties. Therefore, companies that bring goods into the zone may store them or manufacture products free of any federal tariffs until after the merchandise leaves the zone. This creates U.S. jobs and encourages exports.

The total value of cargo in Port Houston’s FTZ 84 is more than $9 billion and that number is expected to grow.

The post Harris County Commissioner Adrian Garcia Receives FTZ Overview appeared first on Port Houston.

Caption: Busy truck gates at Bayport Container Terminal.

Port Houston’s Bayport and Barbours Cut container terminals combined handled more than 11,000 gate moves in one day for the first time ever Aug. 28. Service levels included sub-60-minute dual transaction turn times.

“These numbers were not possible years ago,” Randall Morris, vice president of operations for Canal Cartage Company wrote on LinkedIn. The port has made investments in its assets by strategically planning for capital project improvements at its facilities.

This efficiency milestone follows the recent approval for a truck gate expansion at the Barbours Cut Terminal. The project consists of about 23 acres of new pavement at the existing Barbours Cut Terminal. Major components of work include the demolition of existing pavement and structures, new pavement, additional truck gate lanes and the construction of two new buildings and underground utilities.

Port Houston handles nearly 70 percent of all containers that move through the U.S. Gulf of Mexico, and volume is growing rapidly due to surging demand for imports and a robust export base driven by petrochemical and resin markets.

The post Record Gate Moves at Port Houston Container Terminals appeared first on Port Houston.

The Spirit of Melbourne called at Port Houston’s Bayport Container Terminal.

Port Houston received the maiden voyage and is the only U.S. port of call for a new direct service that global ocean carrier CMA CGM launched in July with Marfret. The MedCaribe service will connect the U.S. Gulf, Mexico, Central America (Costa Rica), the Caribbean and the Mediterranean markets. The first vessel, the Spirit of Melbourne, called the port’s Bayport Container Terminal July 15.

The rotation includes: Houston; Veracruz, Mexico; Manzanillo, Panama; Moin, Costa Rica; Algeciras, Spain; Malta; Livorno, Italy; Genoa, Italy; Marseilles, France; Barcelona, Spain and Valencia, Spain.

“Port Houston is excited to add this new service to our ever-growing global portfolio and looks forward to the positive economic developments that these markets will bring to Houston and the region,” said Port Houston Trade Development Director Dominic Sun.

The post Port Secures New CMA CGM/Marfret MedCaribe Service appeared first on Port Houston.

Port Houston maiden voyage plaque presentation with Port Houston staff, UAL representatives, M/V MarMalaita vessel Captain Slepchenko and stevedore Schroder Marine.

Universal Africa Lines (UAL), a conventional ocean transportation carrier that specializes in handling project cargo, breakbulk and containers, has announced that it will now call Port Houston’s City Docks as part of its U.S. Gulf/Mexico to West Africa liner service. The change was effective with the first regular vessel call of the M/V MarMalaita July 10.

UAL offers two to three sailings per month direct from Houston to West Africa. The company specializes in servicing the oil and gas industry and tailoring logistics solutions for clients shipping to difficult areas. UAL also has a fleet of more than 4,000 containers including reefers, high cubes, open tops and flat racks, with the ability to provide a multitude of shipping options, including door-to-door service.

UAL chose Port Houston due to the available dedicated laydown area for project cargoes and berth availability, both of which provided added flexibility to UAL’s multipurpose fleet. This is particularly important considering the host of UAL’s cargoes that range from helicopters to subsea trees.

“Port Houston is excited about our new partnership with UAL and that they are entrusting us with their services here at the port’s city docks,” said Dominic Sun, director of trade development for Port Houston.

The post Universal Africa Lines to Call Port Houston appeared first on Port Houston.

Caption: Union Pacific Railcar (Photo credit: PTRA)

The Broadway Double Track Project near Manchester Street at the Port of Houston is now complete. The project was administered by the Texas Department of Transportation (TxDOT).

Three Class I railroads – Union Pacific, BNSF Railway and Kansas City Southern Railroad — worked in collaboration with the port and provided half of the project funding. The Houston-Galveston Area Council provided the remaining federal funding. The Port Terminal Railroad Association (PTRA), Union Pacific and BNSF Railway all have rights to operate over tracks on port property.

The estimated $23 million project will generate $63 million in benefits and completes double tracking on the PTRA railroad on the south side of the ship channel. The project will remove train delays of two to four hours a day and alleviate one of the largest rail bottleneck points on the PTRA railroad.

The rail system includes a rail bridge over Broadway Street that provides rail switching services to shippers along the Houston Ship Channel. The construction improvements were made without impact to train operations. In coordination with Harris County, TxDOT and Port Houston, PTRA also is making improvements to rail crossings on Peninsula Road and Jacintoport Boulevard as part of the Peninsula Road Improvement Project.

The post Broadway Double Track Project Complete in East End appeared first on Port Houston.

Houston businessman Ric Campo was recently appointed chairman of the Port Commission of the Port of Houston Authority by the City of Houston and Harris County Commissioners Court.

Campo, chairman and CEO of Camden Property Trust, replaces Janiece Longoria, whose third and final term as chairman ended Feb. 1. She has served on the Port Commission since 2002. Port Commissioners serve two-year terms without pay.

Campo said he was honored and humbled to be considered for the position.

“The best is yet to come for our region, and our port will help drive us into a bright future,” Campo said.

Houston Mayor Sylvester Turner and Harris County Judge Lina Hidalgo presided over the meeting, which was held at Port Houston’s executive offices. By state statute, the Port Commission chair is appointed by the governing bodies of the City of Houston and Harris County Commissioners Court in a joint session.

At the January Port Commission meeting, Chairman Longoria symbolically passed the gavel and the organization in excellent standing, along with her appreciation and support to the newly appointed Port Commission Chairman.

The post Ric Campo Appointed New Port Houston Chairman appeared first on Port Houston.

Caption: Port Chairman Janiece Longoria presiding over her last Port Commission meeting in January. 

Year-end results for 2018 show that Port Houston’s business continues to be solid, with records set in some areas.

“With the leadership and guidance of our Commission, our port continues to prosper,” Port Houston Executive Director Roger Guenther said in delivering his 2018 year-end report to the Port Commission Jan. 29.

Highlighting a host of achievements for 2018, Guenther announced that several records were broken, including total tonnage at Port Houston facilities, which hit 35.7 million tons. That reflected an increase of 9 percent from 2017.

“The strength of cargo activity helped drive operating revenue to $366 million for the year, shattering the previous record set in 2017 of $333 million,” Guenther said. Combined business through the port’s public facilities generated a total cash flow of $162 million, surpassing the previous record set in 2017 of $151 million.

“Cash generated from operations is critical to funding capital projects that support the port’s strategic objectives, including job creation and regional prosperity,” Guenther said.

Container twenty-foot equivalent units increased 10 percent to 2.7 million, a new record for the port.

“The increased volume was driven by solid growth in both import and export loaded boxes,” said Guenther. “This activity has created a balance of imports to exports for the year of 50/50 import to export, which keeps us well-positioned for growth in the coming years.” Steel tonnage recorded 4.4 million tons, a growth of 21 percent from 2017.

The post Strong Year-End Results Delivered by Port Houston appeared first on Port Houston.

Port Commission Chairman Janiece Longoria was recognized for her 16 years of service to Port Houston during the Port Commission of the Port of Houston Authority’s last regular monthly meeting of 2018, which was held Dec. 12. Chairman Longoria has volunteered on the Port Commission since 2002.

She has served in the position of Chairman since she was unanimously appointed by the governing bodies of the City of Houston and Harris County Commissioners Court in a joint session held January 2013. Her six-year term ends in January of 2019.

Actions taken by the Port Commission Wednesday were consistent with Chairman Longoria’s priority to seek continuous support for improvement and maintenance of the Houston Ship Channel. The commission unanimously authorized the Executive Director to negotiate with the U.S. Army Corps of Engineers for an agreed recommendation to identify and pursue one or more alternatives for the federal feasibility study for improvements to the Houston Ship Channel.

Executive Director Roger Guenther was one of many to praise Chairman Longoria’s leadership. She received several resolutions and expressions of gratitude from elected officials including a video tribute with comments from Houston Mayor Sylvester Turner, Harris County Judge Ed Emmett, state Senator-Elect Carol Alvarado, and U.S. Rep. Sheila Jackson Lee, among others.

Texas Governor Greg Abbott and Texas Lieutenant Governor Dan Patrick also expressed their appreciation for her service. Texas State Rep. Mary Ann Perez presented a resolution from the State of Texas, and District H Houston City Councilmember Karla Cisneros read a proclamation from the City of Houston.

“It has been my great honor to serve as Port Commission Chairman for the past six years,” said Chairman Longoria in response to the accolades and ovations received throughout the meeting.

The post Port Chairman Honored for 16 Years of Service on Port Commission appeared first on Port Houston.